Law: Arbitration Act, 1940

Section: 8,9,13,20

(a) Words and phrases--- ----"Arbitrator"---Connotation. "Arbitrator" is 'a neutral person who resolves disputes between parties, especially by means of formal arbitration'. Advance Law Lexicon, 4th Edition defines an arbitrator as 'the person to whose attention the matters in dispute are submitted-a judge of the parties own choosing, whose functions are judicial and whose duties are not those of mere partisan agent, but of an impartial judge, to dispose equal justice to all parties, and to decide the law and facts involved in the matters submitted, with a view to determining and finally ending the controversy. Black's Law Dictionary, Eight Edition and Advance Law Lexicon, 4th Edition rel. (b) Arbitration Act (X of 1940)--- ----S. 13---Authority of arbitrator---Scope---Arbitrator is not a mere conciliator---Arbitrator is a judge of the parties and the concept is based on the premise that he or she shall be a third party, seen as non partisan arbiter or referee---Arbitrator cannot be seen as biased, interested, coloured or prejudiced. (2001) 5 SCC 629 ref. (c) Arbitration Act (X of 1940)--- ----S. 8---Appointment of employee as an arbitrator---Effect---Scope---Party cannot appoint itself or its employee as an arbitrator, except when the other party has consented, or the conduct of the other party during the course of proceedings, implies consent---Party nominating itself or its employee as an arbitrator, particularly when other party raised an objection, can by no stretch of imagination be termed as nominating or appointing an arbitrator---Such an appointment or nomination is a nullity and will be deemed a failure to appoint arbitrator for the purpose of Arbitration Act, 1940. (d) Arbitration Act (X of 1940)--- ----S. 8---Power of Court to appoint arbitrator---Appointment of employee as an arbitrator---Effect---Scope---Respondent filed arbitration agreement in the court on failure of appellant to appoint an arbitrator---Single Judge of High Court directed the appellant to appoint an arbitrator, who intimated the name of its employee---Single Judge of High Court appointed sole arbitrator on failure of appellant to appoint an impartial arbitrator---Validity---When…

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